Diamonds: The Last Commodity Standing

Diamonds: The Last Commodity Standing

An Investor’s Secret

We have written about gold, silver, and precious metals as a store of wealth before as well as its clear price manipulation by the powers that be, but we have never written about diamonds. As the stock market surges to record highs the absence of said surge in gold and silver is extremely telling in what was just mentioned about price manipulation, however, a little known secret about diamonds will have you wondering why you haven’t heard it before as it’s almost too good to be true. One of the reasons the gold and silver markets as well as the commodities market as a whole is able to be manipulated by the world’s biggest banks and hedge funds is the fact that said commodities have a futures market. This would take a lot of explanation, but for the purpose of this post, let’s get straight to the point.

There is one commodity that is not on the futures market at all, and the manipulation of said commodity remains well within the hands of its major sellers. That’s right, diamonds. The price and value of diamonds are fixed by those with major inventories who by only releasing their inventory small bits at a time make sure the value of diamonds stays high. If the actual amount of diamonds were to be known and put on the market, their price would inevitably go down drastically, but because the vast majority of diamonds are kept in the vaults of the world’s major diamond dealers, that is not the case. So from one form of price manipulation to the other, but in the case of diamonds, major banks, and hedge funds can’t do it. When approached by major banks to put diamonds on the futures market, the diamond sellers voted no, and for good reason as the power to set the value of diamonds would be taken out of their hands. Why is this a good thing for you and me?

This makes diamonds an incredibly stable store of value that is very light, easy to hide, and store safely, as well as travel with, unlike heavy gold and silver. But there is one thing that is overlooked about diamonds as a store of wealth. When a person buys a diamond for the wholesale price, it is taxed pretty heavily, however as soon as said diamond is put in a ring, necklace, etc. it is no longer a diamond, but rather considered apparel which is no longer taxed. Even if you put that diamond in a tin foil ring it is now considered jewelry. The implications for any investor is pretty obvious as one would simply need to find a wholesaler in diamonds, pay the much lower wholesale price and conveniently make it a piece of jewelry that becomes extremely portable, gains in value due to it also becoming a piece of art, and is very liquid in terms of it being easy to sell in whatever currency you need or use it as currency to buy what you want.

While on a recent trip to Amsterdam, we learned first hand that the Jewish people who began the first diamond Bourges in Amsterdam and Antwerp have been savvy to this for centuries. Due to extreme discrimination making it very difficult to get a job for Jewish people in Europe they began these diamond Bourges or bureaus by which the buying and selling of diamonds employed the Jewish people from every spectrum of society. If a Jewish family was traveling to another country, instead of exchanging currencies and losing money from the exchange rate, they would carry a couple of diamonds with them to wherever they were going, go to another family member or trusted Jewish friend, and exchange that diamond for the fair value in the currency it was needed in, and due to the law in the Bible against charging interest, they would receive the proper amount no more and no less.

Diamonds are the last hold out in the commodities market not to be traded in the futures market and you can very well benefit from this today by investing in wholesale diamonds and making it into a piece of jewelry. Just as the super-rich invest in artwork and antiques in order to hedge against inflation, so too are they doing this with diamonds. As inflation goes to the moon, and prices rise drastically, now would be a good time to look into this trend.

On the other hand, while this is a good investment, remember that due to the extreme energy shortages around the world, which have led to fertilizer shortages, coupled with excessive crop failures around the world during this harvest season, global supply chain woes, and fertilizer exporting nations hoarding their supplies to feed their own people, it would be just as good of an investment to plant a garden in any way possible because you can’t eat diamonds. To read more about the perfect storm that is brewing for the coming economic crisis read more here. Continue reading here to know how to practically prepare in the case of this perfect storm becoming a reality. Remember this is not to cause panic but to know what is coming in order to be ready both natural and spiritually so that we may be the light of the world when darkness is intensifying. Adonai bless you and keep you!